GAP NO. 200.100
Capital Equipment Purchases On Sponsored Projects
| I. | General |
| II. | Purchasing Procedure |
| III. | Property Control and Record Keeping Requirements |
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I. GENERAL
This procedure describes special requirements for capital equipment purchases charged to Sponsored Projects (30x through 35x or 38x WBS elements). See GAP 200.050, Plant & Equipment Capitalization for the definition of capital equipment.
II. PURCHASING PROCEDURE
To purchase capital equipment on 30x through 35x and 38x WBS elements:
A. Purchase Order (outside vendors)
1. Paper Purchase Requisition
a. Complete a Purchase Requisition and obtain any departmental authorizations required. The department is responsible for ensuring that items being purchased are allowable by the Sponsor and funds are available. All charges to Sponsored Projects must comply with GAP 200.320, Direct Costing on Sponsored Projects.
b. Send Purchase Requisitions to the Office of Sponsored Programs. If the Sponsor is a Federal agency, include an equipment screening form - refer to GAP 200.080, Equipment Screening and Shared Use on Federal Sponsored Projects.
c. The Office of Sponsored Programs will review the requisition for compliance with the terms of the award, appropriateness of the WBS element used, and availability of funds. If the Sponsor requires prior approval of the purchase, the principal investigator is responsible for requesting such approval. The sponsor’s approval must be attached to the Purchase Requisition.
d. If acceptable, the Office of Sponsored Programs will approve the requisition and forward it to Procurement Services.
e. Procurement Services will follow normal purchasing procedures plus sponsoring agency requirements, if any. Procurement Services will follow their departmental procedures to obtain the bids and inform the principal investigator of the bids received.
f. Procurement Services will issue a Purchase Order.
2. R/3 Purchase Requisition
a. Complete the Purchase Requisition in R/3. The department is responsible for ensuring that items being purchased are allowable by the Sponsor and funds are available. All charges to Sponsored Projects must be in compliance with GAP 200.320, Direct Costing on Sponsored Projects.
b. If the Sponsor is a Federal agency, include in the notes section of the Purchase Requisition the certification information required in accordance with GAP 200.080, Equipment Screening and Shared Use on Federal Grants and Contracts.
c. The Purchase Requisition will be routed to the Office of Sponsored Projects automatically by the R/3 system. If the Sponsor requires prior approval of the purchase, the principal investigator is responsible for requesting such approval. The sponsor’s approval must be sent to the Office of Sponsored Projects.
d. If the Purchase Requisition is acceptable, and they have received all required information, the Office of Sponsored Projects will approve the requisition directly in R/3. It will then be routed to Procurement Services.
e. Procurement Services will follow normal purchasing procedures plus sponsoring agency requirements, if any. Procurement Services will follow their departmental procedures to obtain the bids and inform the principal investigator of the bids received.
f. Procurement Services will issue a Purchase Order.
B. Interdepartmental Request and Invoice (IRI) (internal to Duke)
- Complete an IRI and obtain any departmental authorizations required. The department is responsible for ensuring that items being purchased are allowable by the Sponsor and funds are available. All charges to Sponsored Projects must be in compliance with GAP 200.320, Direct Costing on Sponsored Projects.
- Send IRI to the Office of Sponsored Programs. If the Sponsor is a Federal agency, include an equipment screening form - refer to GAP 200.080, Equipment Screening and Shared Use on Federal Sponsored Projects.
- The Office of Sponsored Programs will review the IRI for compliance with the terms of the award, appropriateness of the WBS element used, and availability of funds. If the Sponsor requires prior approval of the purchase, the principal investigator is responsible for requesting such approval. The sponsor’s approval must be attached to the IRI.
- If acceptable, the Office of Sponsored Programs will approve the IRI and forward it to the Duke Vendor.
Note that although Federal Sponsors do not require purchase of American made products, they encourage it.
III. PROPERTY CONTROL AND RECORD KEEPING REQUIREMENTS
For equipment purchased on Sponsored Projects, property control and record keeping responsibilities include the following:
A. Principal Investigator
As custodian of the equipment, the principal investigator is responsible for:
- Safeguarding and maintaining equipment in good repair
- Promptly notifying the Office of Sponsored Programs if sponsor-owned equipment becomes surplus, lost, stolen, or missing
- Promptly notifying Plant Accounting of any change in the location of the equipment
B. Procurement Services
Procurement Services should keep the following in the permanent Purchase Order file:
- Purchase Requisition
- Purchase Order
- Bids obtained
- Equipment Screening form if required
- Sponsored Programs' approval, and any other special approvals.
C. Office of Sponsored Programs
The Office of Sponsored Programs is responsible for:
- Coordinating with Plant Accounting to ensure that the University's capital asset records are accurate and up-to-date.
- Notifying appropriate sponsors of any sponsor-owned equipment that becomes surplus, lost, stolen, or missing
- Expediting the disposal of sponsor-owned equipment according to the requests of the sponsor in coordination with the principal investigator and Plant Accounting
- Submitting property reports to sponsoring agencies as required by the award document.
D. Plant Accounting
Plant Accounting is responsible for:
- Tagging all capital equipment with the appropriate property control tags as appropriate and recording specific information such as description, model, location, serial number, etc., as required by OMB Circular A110
- Maintaining the capital asset records on an accurate and up-to-date basis
- Periodically conducting an independent physical verification of all capital and sponsor-owned equipment and adjusting the capital asset records based on their findings, as required by OMB Circular A110.
| GAP History | |
| Issued: | January 2000 |
| Revised: | March 2002 |
| Revised: | February 2003 |